Carbon capture and storage can help meet climate goals

The Canadian Climate Institute's analysis indicates that CCS projects in the oilsands sector are economically viable under current and proposed federal and provincial policies, including carbon pricing and investment tax credits. The study finds that these projects can generate substantial private returns, suggesting that additional public subsidies beyond those already announced are unnecessary and could lead to excessive corporate profits. While CCS can improve carbon competitiveness and reduce the risk of stranded assets in a declining global oil market, it does not eliminate long-term transition risks associated with the Paris Agreement goals.

• Modelling of hypothetical oilsands facilities indicates that CCS projects are economically viable when accounting for Canada's climate regulations and the rising carbon price, potentially yielding substantial private returns.
• The cost of installing CCS at in-situ and mining facilities is estimated between $89 and $144 per tonne of emissions avoided, which is lower than the projected 2030 federal carbon price of $170 per tonne.
• Additional public subsidies beyond those already announced are not required to make oilsands CCS projects viable, and further funding risks creating excessive profits for companies.
• While CCS can improve a facility's carbon competitiveness and reduce the risk of becoming a stranded asset, it does not remove the overall transition risk as global oil demand declines and Paris Agreement goals require steep emission cuts.
• The economic viability of these projects depends heavily on the swift finalization of key policies, specifically the federal carbon capture, utilization and storage (CCUS) investment tax credit and 'carbon contracts for differences' to manage carbon-pricing risk.

APA

Canadian Climate Institute (2023). Carbon capture and storage can help meet climate goals. https://climateinstitute.ca/carbon-capture-and-storage-can-help-meet-climate-goals/

Chicago

Canadian Climate Institute. Carbon capture and storage can help meet climate goals. 2023. https://climateinstitute.ca/carbon-capture-and-storage-can-help-meet-climate-goals/.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=Carbon capture and storage can help meet climate goals |date=12 July 2023 |url=https://climateinstitute.ca/carbon-capture-and-storage-can-help-meet-climate-goals/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitute2023carbon, author = {{Canadian Climate Institute}}, title = {{Carbon capture and storage can help meet climate goals}}, institution = {Canadian Climate Institute}, year = {2023}, month = jul, url = {https://climateinstitute.ca/carbon-capture-and-storage-can-help-meet-climate-goals/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }